DOL and Wisconsin Agency Sign Pact to Reduce Employee Misclassification

The memorandum represents a new effort by the agencies to work together.

The U.S. Department of Labor announced it has partnered with the Wisconsin Department of Workforce Development in signing a memorandum of understanding with the goal of protecting the rights of employees by preventing their misclassification as independent contractors or other non-employee status. Under the agreement, the agencies will share information and coordinate law enforcement.

"Working with the states is an important tool in ending misclassification. These collaborations allow us to better coordinate compliance with both federal and state laws alike," said Karen Chaikin, regional administrator for the Midwest branch of DOL's Wage and Hour Division.

The Wisconsin Department of Workforce Development is the latest state agency to partner with DOL. Alabama, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New York, Utah and Washington state agencies have signed similar agreements.

"Misclassification deprives workers of rightfully earned wages and undercuts law-abiding businesses. This memorandum of understanding sends a clear message that we are standing together with the state of Wisconsin to protect workers and responsible employers and ensure everyone has the opportunity to succeed,” said Dr. David Weil, administrator of the Wage and Hour Division.

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